Loan Funds Available for Rural Water, Wastewater Systems 

The Rural Water Loan Fund, established through a grant from the USDA’s Rural Utilities Service, provides low-cost loans for short-term repair costs, small capital projects, or pre-development costs associated with larger projects for water and wastewater utilities. Eligible systems must be township or authority-owned serving up to 10,000 persons, or in rural areas with no population limits. 

Loan amounts may not exceed $200,000 or 75% of the total project cost, whichever is less. Projects eligible for loan funding include planning costs for infrastructure projects; replacement equipment, system upgrades, maintenance and small capital projects; energy efficiency projects to lower costs and improve system sustainability; and disaster recovery or other emergency loans. 

Applications are accepted throughout the year. Townships may contact the PA State Rural Water Association for assistance in preparing and submitting required documents.